Brief introduction to the OS business modelspar : Rahmo Mohamed

CC salon Open Taqafa .220 ctob 2012

introduction

we are not speaking about something specific this is just an introduction, you can innovate and creat your own business model, stimulating the innovation is the mean goal of this presentation

we speak about : Open source according to the first two lines of the definition in wikipedia it's :

" open source is a philosophy, or pragmatic methodology that promotes free redistribution and access to an end product's design and implementation detail "

we speak about : business model

A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy.if you wonder this is wikipedia again

how i made this presentation ? i was reading .... then i found an other presentation that contain all the categories i want ... i took them from it , thank you : Swati Sani C.E.O. SANIsoft , Nagpur, India, i really don't know you but you did save my life you are a dude ! and also Naomi Hoffman for the paper Open Source Software

we are not saying

the propriety software is bad, and all this bullshit about comparison between this and that we are just speaking about what exist, what could be done, to explain to people how business works and how they can make money programing those stuffs.

Categories

● OSS Tools and Applications ● Products and Services ● Marketing

Support Sellers In this model, you give away the software product, but sell distribution, branding, and after-sale service. This is what Red Hat and Cygnus are currently doing.● Base software free● Sources of revenue

○ media distribution○ Branding○ Training○ Consulting○ custom development○ post-sales support

Loss LeaderIn this model, you give away open-source as a loss-leader and, temporarily, market position for potential future sales for proprietary software. ● Build the brand and reputation ● Add Value to the traditional products :making them

more functional and useful● Increase the overall base of loyal customers

Widget Frosting

In this model, a hardware company (for which software is a necessary addition but strictlya cost rather than profit center) goes open-source in order to get better drivers andinterface tools cheaper.

AccessorizingSelling accessories - books, compatible hardware, complete systems with open-source software pre-installed. It is easy to trivialize this (open-source T-shirts, coffee mugs, Linux penguin dolls) but at least the books and hardware provide some clear successes: O'Reilly Associates, SSC, and VA Research are among them.

Software Franchising● Lack marketing power?● Give your product free to the appointed

franchisees Train them● Revenues would come from sources such as

sales of franchises and royalties based on franchisees' revenues

Sell it, free it ! ● Loss Leader'' model repeated and extended

through time● Sell your product the traditional way for

adding to product life cycle, open it after a certain length of time

● Timing: When you free it is very important Your customers pay a premium for the value of having the software earlier rather than later

Dual Licensing

● Non Commercial usage are licensed under one of the open source license (Most often GPL)

● Commercial usage Charged

Brand Licensing

● Open the source of your product but● Retain brand reminiscence and Intellectual

Property rights● Customers pay for license to use your

product

conclusion

you can have your own business model , don't be stressed be your self and do business it's easy even if it looks hard but if you don't take it that serious it will be easy